Budget & Taxes (Tax Incentives)

passed · Michigan · Senate Jul 3, 2026

SB 793: Economic development: plant rehabilitation; industrial facility tax; modify. Amends secs. 3, 6, 7 & 9 of 1974 PA 198 (MCL 207.553 et seq.).

SB 793 amends Michigan's industrial facility tax law to clarify key definitions for tax exemption eligibility. It updates terms like "restoration" (major renovations to industrial properties, including structural improvements) and "speculative building" (new structures built without a specific tenant) to better align with current development practices. These changes directly affect local governments, economic development organizations, and businesses seeking tax benefits for industrial property improvements. The bill focuses on making the program's rules clearer without altering the core tax exemption structure.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends industrial facility tax law to clarify exemptions, enabling more businesses to qualify for tax relief under economic development programs, directly supporting tax incentive policies.90% confidence

Sub-Topics Business Taxes Tax Incentives Tags Economic Development

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in committee · Michigan · House Feb 26, 2026

HB 5573: Property tax: other; definition of nonprofit charitable institution; provide for. Amends sec. 7o of 1893 PA 206 (MCL 211.7o).

HB 5573 expands property tax exemptions for specific nonprofit organizations in Michigan. It adds new exemptions for conservation land held by qualified nonprofit groups (like nature preserves open for public recreation) and clarifies exemptions for nonprofit hospitals, skilled nursing facilities, and educational institutions. The bill specifies detailed requirements for organizations to qualify, such as perpetual land preservation for conservation groups and licensing for healthcare facilities. These changes directly affect qualifying nonprofits, conservation organizations, and healthcare providers by allowing them to exclude certain properties from local property taxes. The bill refines existing tax exemption rules without creating new tax rates or funding mechanisms.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands property tax exemptions for nonprofits, providing targeted tax relief per bill's intent to reduce tax burden on qualifying organizations.92% confidence ✓ EnvironmentSupports EnvironmentExpands property tax exemptions for nonprofits managing conservation land requiring perpetual preservation, directly advancing environmental protection through tax incentives for land conservation.90% confidence

Sub-Topics Property Tax Tax Incentives Conservation

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passed · Michigan · Senate Jul 3, 2026

SB 792: Economic development: obsolete property and rehabilitation; obsolete property rehabilitation act; modify. Amends secs. 2, 6, 7, 14, 16 & 17 of 2000 PA 146 (MCL 125.2782 et seq.).

SB 792 amends Michigan's "Obsolete Property Rehabilitation Act" to clarify definitions and update eligibility for tax exemptions on rehabilitation projects. The bill specifies that "obsolete property" includes blighted, functionally obsolete, or brownfield sites (e.g., industrial buildings converted to residential use), and defines "rehabilitation" to require major improvements (exceeding 10% of property value), excluding minor repairs. It refines criteria for local governments to establish rehabilitation districts, limiting eligibility to areas with economic hardship indicators like low median income or proximity to large cities. This affects property owners and local governments in designated districts by ensuring only substantial rehabilitation projects qualify for tax relief under the updated rules.

Topics ✓ Budget & TaxesSupports Budget & TaxesAmends tax exemption criteria for property rehabilitation, promoting economic development through targeted fiscal incentives for blighted sites and brownfield redevelopment.90% confidence ✓ HousingSupports HousingAmends tax exemptions for rehabilitating obsolete properties (e.g., industrial-to-residential conversions), promoting housing development through clearer eligibility and major improvement requirements.90% confidence

Sub-Topics Tax Incentives Community Development Property Development Property Taxes Tags Economic Development

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in committee · Michigan · House Jan 22, 2026

HB 5464: Economic development: plant rehabilitation; requirements related to the revocation of an industrial facilities exemption certificate; modify. Amends sec. 15 of 1974 PA 198 (MCL 207.565). TIE BAR WITH: HB 5463'26

HB 5464 amends Michigan's law governing industrial facilities exemption certificates, which allow businesses to temporarily avoid certain property taxes for rehabilitating or building industrial facilities. The bill clarifies that certificates may be revoked if businesses fail to meet specific deadlines: completing replacement facilities within 2 years (or longer with commission approval), finishing speculative buildings within 2 years, or using facilities for non-qualifying purposes. It requires the state tax commission to provide notice and hold hearings before revoking certificates, with revocations taking effect by December 31 following the commission's order. This directly affects businesses holding these tax exemptions who miss project deadlines or deviate from approved facility uses.

Topics ✓ Budget & TaxesSupports Budget & TaxesClarifies revocation of tax exemptions for non-compliance, enforcing fiscal responsibility in industrial facility tax programs.85% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · House Jan 22, 2026

HB 5463: Economic development: plant rehabilitation; requirements related to an industrial facilities exemption certificate; modify. Amends sec. 7 of 1974 PA 198 (MCL 207.557). TIE BAR WITH: HB 5464'26

HB 5463 amends Michigan's industrial facilities exemption certificate process under MCL 207.557. It clarifies when tax exemptions for new or replacement industrial facilities become effective, particularly when applications face delays. The bill allows certificates to take effect as early as December 31 of the year an application is received (if complete by October 31), rather than waiting until the next calendar year. This directly affects businesses seeking tax exemptions on industrial property and local governments administering the program. The changes aim to reduce administrative delays without altering eligibility requirements.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill streamlines tax exemptions for industrial facilities, reducing state tax revenue by allowing earlier exemption effectiveness.90% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · House Jan 22, 2026

HB 5461: Economic development: plant rehabilitation; definition of speculative building; modify. Amends sec. 3 of 1974 PA 198 (MCL 207.553).

HB 5461 amends Michigan's 1974 Plant Rehabilitation Act (MCL 207.553) by clarifying the definition of "speculative building" to prevent misuse of tax exemption programs. It specifically targets buildings constructed before identifying a tenant (new facilities) or existing buildings meeting strict vacancy, district, and population criteria (existing facilities). The bill directly affects industrial property owners seeking tax exemptions by tightening eligibility rules for "speculative" structures. This change ensures tax exemptions apply only to genuine rehabilitation or development projects, not buildings built without committed users.

Topics ✗ Budget & TaxesOpposes Budget & TaxesTightens tax exemption eligibility for industrial properties, restricting potential tax breaks by clarifying 'speculative building' to prevent misuse of tax programs.95% confidence

Sub-Topics Tax Incentives

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in committee · Michigan · House Dec 17, 2025

HB 5379: Property tax: exemptions; property tax exemption from certain millages levied under the district library establishment act if the property's owner has no children attending public schools in this state; provide for. Amends sec. 13 of 1989 PA 24 (MCL 397.183). TIE BAR WITH: HB 5376'25, HB 5377'25, HB 5378'25

HB 5379 creates a property tax exemption for homeowners without children attending Michigan public schools or receiving publicly funded educational services. Starting December 31, 2026, these property owners will be exempt from the portion of library millages (tax rates) levied by districts that include school districts, specifically the part exceeding 2 mills. This change applies to taxes under the District Library Establishment Act and aligns with existing exemptions in the General Property Tax Act. The bill affects residential property owners who do not have school-age children enrolled in Michigan public education.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption for homeowners without school-aged children, reducing their tax burden under library millages, aligning with tax relief for middle-income homeowners.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Dec 17, 2025

HB 5376: Property tax: exemptions; property tax exemption from certain school-related millages if the property's owner has no children attending public schools in this state; provide for. Amends 1893 PA 206 (MCL 211.1 - 211.155) by adding sec. 7yy. TIE BAR WITH: HB 5377'25, HB 5378'25, HB 5379'25

HB 5376 would create a property tax exemption for Michigan homeowners without children enrolled in public schools or publicly funded educational services (K-12) in the state. Starting in 2027, eligible property owners would receive a phased reduction in school-related property taxes: 40% in 2027, increasing to 100% by 2031. To qualify, owners must provide proof (like a withdrawal letter or affidavit) that no dependents used public education, and the exemption excludes properties owned through private entities where the actual owner has school-aged children. The bill specifically targets school millages (taxes funding schools), not general property taxes, and requires local assessors to verify eligibility using state education data.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption reducing school-related millages for homeowners without public school children, providing direct tax relief.95% confidence ✗ EducationOpposes EducationBill reduces school funding by exempting homeowners without public school children from school-related property taxes, cutting revenue for schools.90% confidence

Sub-Topics Property Tax Tax Incentives K-12 Education

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in committee · Michigan · House Dec 17, 2025

HB 5378: Property tax: exemptions; property tax exemption from the state education tax if the property's owner has no children attending public schools in this state; provide for. Amends secs. 2 & 3 of 1993 PA 331 (MCL 211.902 & 211.903). TIE BAR WITH: HB 5376'25, HB 5377'25, HB 5379'25

HB 5378 would create a new property tax exemption from the state education tax for homeowners who have no children attending public schools in Michigan. Specifically, starting December 31, 2026, property owners without dependents enrolled in Michigan public schools (full- or part-time) would qualify for this exemption. The bill amends Michigan's State Education Tax Act to add this provision, which is contingent on three related bills (HB 5376, HB 5377, and HB 5379) also becoming law. The exemption applies to property tax levied under the State Education Tax Act, directly affecting homeowners without school-aged children in public schools.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption from state education tax for homeowners without children in public schools, providing targeted tax relief.92% confidence ✗ EducationOpposes EducationBill creates property tax exemption from state education tax for homeowners without children in public schools, reducing education revenue. Defunding measure, so oppose.90% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Michigan · House Dec 18, 2025

HB 5397: Use tax: exemptions; data center exemption; eliminate. Amends sec. 21 of 1937 PA 94 (MCL 205.111) & repeals sec. 4cc of 1937 PA 94 (MCL 205.94cc).

HB 5397 eliminates a tax exemption for data center equipment under Michigan's Use Tax Act. It repeals Section 4cc, which previously allowed data center businesses to claim an exemption from use tax on equipment purchases. This change means data center operators will now pay the standard use tax on qualifying equipment instead of claiming the exemption. The bill directly affects data center businesses that previously utilized this tax exemption.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates data center tax exemption, closing a loophole to increase state revenue under use tax policy.95% confidence

Sub-Topics Sales Tax Tax Incentives

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